prepare closing entries as of August 31 (the perpetual inventory system in used)

Valley Company's adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: sales salaries expense, rent expense-selling space, store supplies expense, advertising expense. It categorizes the remaining expenses as general and administrative. Debit Credit Merchandise inventory(ending) $ 41,000 Other (noninventory) assets 130,400 Total liabilities $ 25,000 K. Valley, Capital 104,550 K. Valley, withdrawals 8,000 Sales 225,600 Sales discounts 2,250 Sales returns and allowances 12,000 Cost of goods sold 74,500 Sales salaries expense 32,000 Rent expense-Selling space 8,000 Store supplies expense 1,500 Advertising expense 13,000 office salaries expense 28,500 Rent expense-office space 3,600 Office supplies expense ences Totals $355,150 $355, 150 ht 400 Beginning merchandise inventory was $25,400. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Invoice cont of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation in $ 92.000 2.000 4.500 4,600 Required: Prepare closing entries as of August 31 (the perpetual inventory system is used). View transaction list Journal entry worksheet Record the entry to close the income statement accounts with credit balances. Note: Enter debits before credits. Date General Journal Debit Credit Aug 31 Record entry Clear entry View general journal View transaction list Journal entry worksheet